Bitcoin consolidates in the short term, targeting a range of $88,000–$91,000
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Bitcoin consolidates in the short term, targeting a range of $88,000–$91,000
Coinbase premium index rises to a 7-month high.
Navigating Web3 tides with focused insightsBy BitpushNews
The Consumer Price Index (CPI), released on Wednesday, showed that the core CPI—excluding food and energy costs—rose 0.3% for the third consecutive month. The overall CPI increased 2.6% year-over-year, marking the first annual gain since March this year.
Following the new data, investors increased their bets on a Federal Reserve rate cut at the December meeting. According to the CME Group's FedWatch tool, Wall Street now assigns an 82% probability to a 25-basis-point rate cut at the December FOMC meeting.
After the CPI release, U.S. stocks opened flat before gaining momentum. Major indices closed mixed. The Dow Jones Industrial Average edged up 0.11%, the Nasdaq Composite fell 0.26%, while the S&P 500 remained nearly unchanged.
The crypto market saw heightened volatility. Bitcoin initially dropped to $86,300 but then surged back, hitting a new all-time high of $93,500 intraday. At the time of writing, Bitcoin was trading at $90,451.16, up 2.91% over the past 24 hours.
Another major story in crypto was Donald Trump’s announcement of the creation of the Department of Government Efficiency (DOGE), to be led by Elon Musk and Vivek Ramaswamy. The news boosted Dogecoin (DOGE), which spiked to $0.44 on Tuesday and retested that resistance level on Wednesday.
Coinbase Premium Index Hits 7-Month High
Data from CryptoQuant shows that Bitcoin’s Coinbase Premium Index—a key indicator of U.S. demand—has jumped to 0.2, its highest level since April, highlighting strong buying pressure from U.S. traders.
The index measures the price difference of Bitcoin between Coinbase and offshore Binance, the world’s largest cryptocurrency exchange by trading volume. Coinbase is widely used by U.S. retail and institutional investors.
While it remains unclear exactly which types of market participants are driving purchases, spot Bitcoin exchange-traded funds (ETFs) listed in the U.S. saw robust trading volume at the open. According to Barchart, BlackRock’s iShares Bitcoin Trust ETF (IBIT), the largest spot ETF with $40 billion in assets, recorded approximately $1.2 billion in trading volume within the first hour, making it the fourth most actively traded ETF across all categories.
Potential Consolidation Phase Ahead in Short Term
According to Willy Woo, founder of data platform Woobull and a statistician, BTC may see further consolidation between $88,000 and $91,000 before attempting a move toward the next major resistance level at $102,000.
Woo noted on X that when Bitcoin breaks past historical highs, markets lack prior reference points, leading to increased price volatility. As such, technical analysts often rely on tools like Fibonacci retracements and liquidation levels to identify potential resistance zones.
He pointed out that recent Bitcoin price movements align closely with Fibonacci and liquidation levels within the $88,000 to $91,000 range, suggesting the current price resides in a relatively stable zone.
Looking ahead, Woo identifies $102,000 as the next key technical resistance level. This target is derived from Fibonacci analysis based on historical cycle peaks and the current cycle low.
Bitcoin is still in early stages—but could reach $500,000
"This isn’t inning one anymore," wrote Matt Hougan, Chief Investment Officer at Bitwise, in a report to clients on Tuesday. "But we’re still early in the game before Bitcoin reaches $500,000."
Hougan said that although a pullback into a consolidation phase is expected, “$100,000 feels like it might be just around the corner.”
He also believes $500,000 per Bitcoin marks the right inflection point between early and late adoption phases, signaling Bitcoin’s true “maturity,” drawing a comparison with gold.
"Right now, gold and Bitcoin each have a total market cap of about $20 trillion," Hougan explained. "If Bitcoin were to capture half of gold’s market share, based on the current circulating supply, that would put the price of Bitcoin at $500,000." He added that central bank behavior will be a critical driver behind Bitcoin’s price appreciation.
Hougan believes that if central banks begin adding Bitcoin to their reserve portfolios, it would significantly accelerate price growth. He cited U.S. Senator Cynthia Lummis’ proposed “National Bitcoin Strategic Reserve” as an example illustrating the plausibility of this trend.
The report stated: "If central banks start following suit, reaching $500,000 for Bitcoin won’t be far off. But considering Bitcoin’s potential to expand the entire store-of-value market, along with the reality of rising government debt and ongoing money printing, Bitcoin’s long-term price potential extends well beyond that. Reaching $1 million or even higher is entirely possible."
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